Vantage Drilling International

HOUSTON, TX--(Marketwired - Mar 9, 2017) - Vantage Drilling International ("Vantage" or the "Company") reported a net loss of approximately $41.1 million or $8.23 per share for the three months ended December 31, 2016 as compared to the Predecessor reporting a net loss of approximately $8.8 million for the three months ended December 31, 2015. The weighted-average shares outstanding for the three months ended December 31, 2016 was 5,000,053 whereas in the prior year, as a wholly-owned subsidiary, the Predecessor did not have a comparable outstanding ordinary shares.

Upon emergence from the Company's Chapter 11 restructuring on February 10, 2016, Vantage adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to "Successor" relate to the financial position and results of operations of the reorganized Vantage as of and subsequent to February 10, 2016. References to "Predecessor" refer to the financial position of Vantage as of and prior to February 10, 2016 and the results of operations prior to February 10, 2016. As a result of the application of fresh-start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements on or after February 10, 2016 are not comparable with the financial statements prior to that date.

For the period from February 10, 2016 to December 31, 2016, Vantage reported a net loss of approximately $147.4 million or $29.48 per share and the Predecessor for the period January 1, 2016 to February 10, 2016 reported a net loss of approximately $471.0 million. For the year ended December 31, 2015, the Predecessor reported net income of approximately $17.2 million.

As of December 31, 2016, Vantage had approximately $231.7 million of available cash as compared to $241.1 million as of September 30, 2016. Additionally, Vantage had $24.6 million available for issuance of letters of credit under its revolving letter of credit facility at the end of the quarter. Ihab Toma, CEO, commented, "Despite a very challenging market for offshore rigs, we were able to successfully reactivate the Emerald Driller
in the fourth quarter in Qatar and have subsequently obtained a new contract for the Topaz Driller
in Thailand. We continue to deliver on our commitment to putting our assets to work while maintaining superior performance, operating safely, managing costs and preserving our strong balance sheet."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and four ultra-premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells globally for major, national and large independent oil and natural gas companies. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Vantage disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Vantage Drilling International

Consolidated Statement of Operations

(In thousands, except per share data)

(Unaudited)

Successor

Predecessor

Three Months Ended December 31, 2016

Period from February 10, 2016 to December 31, 2016

Period from January 1, 2016 to February 10, 2016

Three Months Ended December 31, 2015

Twelve Months Ended December 31, 2015

Revenue

Contract drilling services

$

34,655

$

134,370

$

20,891

$

118,714

726,717

Management fees

410

4,074

752

1,795

7,501

Reimbursables

5,344

20,204

1,897

7,893

38,047

Total revenue

40,409

158,648

23,540

128,402

772,265

Operating costs and expenses

Operating costs

29,635

123,022

25,213

75,601

359,610

General and administrative

8,931

36,922

2,558

7,572

25,322

Depreciation

18,486

67,920

10,696

32,191

127,359

Total operating costs and expenses

57,052

227,864

38,467

115,364

512,291

Income (loss) from operations

(16,643

)

(69,216

)

(14,927

)

13,038

259,974

Other income (expense)

Interest income

(8

)

18

3

30

84

Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016)